Abstract

Entrepreneurship is associated with economic growth in developed countries. Education level, however, has different impacts on entrepreneurship. In some contexts, it has a negative impact due to educated individuals having greater job choice and awareness of risks and challenges in establishing a business. In other cases, low levels of education may drive the pursuit of entrepreneurship out of necessity. Using Global Entrepreneurship Monitor data from 2016, this research sought to determine the role of education and related factors in entrepreneurial motivation. The study focuses on the following Latin American countries: Panama, Chile, Argentina, Uruguay, Mexico, Brazil, Columbia, Peru, Ecuador, El Salvador, Guatemala, and Belize. Extending current research on entrepreneurship in the Latin American context, specifically related to opportunity and necessity motivations, the current study examines household income, education level, and work status. In this paper, findings indicate that education plays a role in entrepreneurial participation intent. Higher levels of education the intent leans toward opportunity motives and lower levels of education by necessity. We find that low-income households show greater evidence of nascent entrepreneurship. The study also looks at fully employed versus part-time employed entrepreneurs who show a propensity to not only see but act on entrepreneurship due to a perception or reality of a good opportunity.